If you are having problems making your mortgage, you are very likely concerned about being able to stay in your home and avoiding the low credit score that comes from letting the bank foreclose on your home. The fact is, letting the bank repossess a home should be the last possible choice, and usually can be avoided if proper steps are taken soon enough. Here are strategies for avoiding repossession on your Portland real estate that will assist you avoid the mistakes others who are behind on their home loan often make.

1. Let your emotions take a back seat

It’s extremely important to think logically and constructively, which means forcing your emotions into the corner where they belong. When you want to throw up your hands and skip another payment without doing something, force yourself to do the right thing and learn your options.

2. Aggressively take action, don’t be an avoider

No one enjoys financial duress and it’s typical to want to avoid the underlying issues, but you’re better off staring the dragon in the face. Being an avoider doesn’t make a bank repossession less likely, but more likely. Quite the opposite is true, in fact, the sooner you take action one you realize the financial position you’re in, the better position you’ll be in down the road.

3. Contact the bank for a workout

When your payments are in arrears, you may be able to negotiate a mortgage workout from the bank. A mortgage workout can be temporary or permanent, sometimes even renegotiating the amount of loan balance owed. It is definitely worth talking to your bank about.

4. Try a short sale

A short sale means asking your bank to take less than you owe in order to sell the home to a new owner. In most states, there is always the possibility they will come back to youlater for the amount they lost on the deal, but that is rare. You may even be able to negotiatethe exact wording of the language in your credit report so it’s not as bad as it would have otherwise been if you had let the situation progress to foreclosure.

In conclusion, don’t let your situation get too far along if you are behind on your loan, whether that is on your home in Portland or your summer getaway home such as Marco Island condos or Albuquerque real estate.

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